BBC News reports the appointment of Ben Bernanke – who led the US Federal Reserve from 2006-14, through the financial crisis – to head up a review of the Bank of England’s forecasting.
“Forecasts are an important tool for central banks to assess the economic outlook,” Bernanke told BBC News. “But it is right to review the design and use of forecasts and their role in policymaking, in light of major economic shocks.”
The current economic situation was not foreseen by the Bank, which forecast inflation would peak at 6% – it still sits higher than that now.
